there i marinate and this is boom bust and here are some of the stories we're tracking for you today first up thanksgiving day is about stuffing ourselves with turkey but this year many stores were stuffed with shoppers twenty four hours ahead of black friday as well now i'll tell you what this means for the retail sector all coming all right up plus a bart chilton is leaving the c.f. to see at the end of the year will be a maverick commodity commissioners' next move be to politics is a book deal in the works will explain coming up later on in the show and it's been at ninety years since the ends of germany's inflationary woes we'll tell you about the lessons the u.s. could learn from the via my republics but now let's get to the show.

happy black friday everyone left the absurdity begin police are reporting violence from people pushing and shoving their way into stores for what holiday shoppers see is the best deals of the year on this very black friday now in fact at a wal-mart in las vegas he was shot when he sees me i think shot another man in the leg before making off with the poor victims newly purchased big screen t.v. true story now the national retail federation issued crowd management guidelines urging stores to prepare for flash mobs long lines of angry customers and crowded bathrooms sounds like a blast now the world sales world sales incorporated. predicted sales from black

friday through cyber monday will increase two point two percent to over forty billion dollars this year and chicago based researcher shopper trak they reiterated that projection that holiday sales will advance two point four percent this is the smallest rise since two thousand and nine. now in other news that mark carney is heading the bank of england in a new direction the bank of england governor took steps thursday to avoid a potential housing bubble by reducing the country's credit boosting program many see this change as a sign that the bank of england has confidence in the economy as the palin rose to its strongest level in more than two years investors are betting that changes to the funding for lending scheme will push the bank of england towards an exit from the aggressive stimulus that has been undergoing the past couple years well there you have those your headlines for this post turkey friday.

the cost of characters of the commodity futures and trading commission has changed quite a bit recently now the chairman of the c f.t.c. gary gensler will step down at the end of the year and the outspoken commissioner bart chilton plans not to seek another term. i spoke with mark mullin editor of future intelligence at opel s. and started off by asking him what these departures meant for not only the c.f.d. sea but also for the implementation of dodd frank. there is what people are hoping will happen and then there is what people think is probable to happen i think the biggest change to occur is with timothy myside potentially taking over as the c f.t.c. chairman. regulatory sources of us have told me this could be terrifying. gary gensler and bart chilton have made a number of enemies they've made enemies in the chicago exchange community and particularly and perhaps most importantly they've made enemies in the big banking

community so there is going to be no she tears shed when these guys leave the sea f.t.c. but they put together a reform agenda that quite frankly has people who are in the know stunned because these are reforms with teeth these are reforms that protect the american public and the big banks are doing everything they can to slow things down and to change what again solar and chilton have put in place i quite frankly hope they don't succeed i've been told that timothy mcveigh one of his mandates is to turn back the clock of time of the c.f. to see. do you see the assads nominations through. look here's the bottom line in congress the big banks want and that's all there is to it you know senator durbin from illinois said the big banks run this place and i think one of the interesting things about bart chilton he's always been able to question the big banks he's not afraid of them and gary gensler after m.f.

global he turned on the big banks as well i think it's important for the american public that we have regulators who are willing to stand up to the big banks and to protect the american people you know i recently had a conversation with bart chilton as you know he said clearly in two thousand and eight the derivatives that underlie the economic system with the cause of that crash and they what they want to do is protect the american people from future two thousand and eight it's now on the subject of your interview with one. are some of the most startling things that he revealed to you because he was very candid in his interview he was and i think it's an important interview because he really put it on the table most startling to me and there were a number of them but most startling to me was he revealed that he asked the fed for information on the banks and their commodity position limits and the fed did not provide that information now think about this the c.f. to see their mandate is to make sure that people aren't manipulated in the markets

where the big banks have been accused a number of times of manipulating the markets so why is the fed evidently protecting the big banks i don't get it that answers now this isn't entirely disparaged because bar did have some conversations with william dudley who recently made a very important speech saying the bank culture needs to change and he and evidently went back and forth on that. speech and they're speaking of a change to the banking culture what about the book a role you know that was supposed to keep banks from gambling with customers deposits of will the final form be anything like what congress intended for it to be. and terms of the volcker rule did you see that you know it's designed again to keep banks from not gambling with customer deposits do you think that the final form will be anything like what congress intended it to be well we can hope in the interview that we said there's a d.c.

quadrant kill place and so one of the one points of the d.c. quater kill is when the big banks want to change the rules they do so through one of the points being the wall making process chilton again serve and fight in this they want the protective regulations in place so that we don't see a tremendous market crash and then another bailout what's unusual about this change of leadership right now is the volcker rule still hasn't been written. it's playing out the clock and gary gensler is working very hard to make sure that the volcker rule gets written before he leaves whether that happens or not still remains to be seen indications are that once timothy takes over the sea of t.c. we're going to see a very different see have to see and we're going to see a very different level of aggressiveness relative to the big banks so i think if it doesn't achieve his objectives before he his term is up and then it's put him sod's hands we might see something that reformers are going to be very happy with now

there's speculation that shelton might run for political office and i realize that you have to kind of remain tight lipped but do you have any indication about what he might be doing after leaving office he has given the mainstream media no indication so far well i have to respect when i'm told things off the record i think personally think burchill would be a fantastic politician i don't know that he has the stomach for it in my mind or children would be like you know elizabeth warren democrats and i think i see a new trend coming in the united states elizabeth warren is the future and burchill has everything going for him that i think he could fit right into that slot and i think i would i would love to see him in political leadership he has said to me on the record that he plans to remain vocal he's thinking about writing a book and trust me i know what bart chilton knows and his book would be phenomenal

it would expose quite a bit so little a little book brady maybe a little politics. up in the air bag of mixture or i think if he had his choice he'd like to stay in the derivatives industry ok but i would love to see him in political life i don't know he has the stomach for now what aleve sounds recently wrapped up was a multi-year investigation into the manipulation silver market is this case officially closed by the c f.t.c. . hot topic you're hitting all the right notes here on the case is closed. don't be surprised if we see new information come out at some point but the case is officially closed these manipulation cases you know where they need to be pursued aggressively one of the things bart chilton said in his interview with me was during the library manipulation the banks said to him essentially look manipulating

the rates lower what doesn't matter if you're manipulating rates lower or higher was bart's response you don't manipulate markets. if you're a free market thing. we live in the united states right what remark. now i want to turn now to iran there was a landmark agreement between iran and six other world powers now this was reached over the weekend engineered and in the deal it's designed to curb iran's nuclear program all staving off harsh new trade sanctions but a country now you have an interesting take on the financial incentives behind iran's nuclear deal can you expand upon these ok first there is a financial condition that stipulates iran must transact oil for u.s. dollars they cannot sell oil for gold ask yourself this question this is a nuclear proliferation deal why is a currency swap involved in the nuclear pro player for asian deal and quite frankly

this is the tip of a little iceberg a little can of worms that i find fascinating ok the inside talk in the financial services industry has always been in order to remain the world's reserve currency the u.s. is going to do whatever it takes now the question has always been what does that involve when libya when they overthrew khadafi in libya he was in the process of negotiating a deal gold for oil you know so here they are putting on the to. table why this is important and they're saying in a deal on nuclear proliferation deal that one of our key diplomatic and security interests is to make sure that we have oil for u.s. dollars and the whole petro dollar trade there's modeling right now being undertaken by hedge funds you know that's a mega trend that we need to keep an eye on because when the petro dollar trade starts unwind it's going to impact the curve and we could see a number of different financial events occur once that starts on war and. that was

market molin editor of futures intelligence. coming up economics professor richard edlin joins me live to discuss what germany's history can teach the u.s. about inflation then rachel curtis is joins me to talk about a busy battle one ben is having over there music it's in today's big deal but as we head to a quick break here's a look at some of today's closing numbers. i'm

. kind of. i'm. all about money and i'm actually like a politician right. here just two. days. i've got a quote for you. it's pretty tough. stay with substory. because this guy like me are about done stead of working for the people most missions the beach or ritual the drug runners vision. of the road it was.

ninety years ago this month the great german inflation came to an end with the collapse of the market in one thousand nine hundred twenty three now as record numbers of people spend this black friday shopping fueling our money velocity well take a look back at what lessons we can learn from germany's past joining me now is richard evilly an economics professor at northwood university to discuss and inflation past and present hello richard thank you for being here with us us today now i first want to start off by asking you in one of your recent articles you draw parallels between germany's great inflation in the early one nine hundred and today's monetary policy here in the u.s. can you explain to us what you see is the greatest danger of such monetary policy. well the grid is danger is the one that has occurred historically whenever governments that fall of path of excessive monetary expansion that is the their

economies are flooded with money the eventually the money percolate out to the population people in the society with more money in their pockets proceed to spend it to buy the things that they want and desire and wish to purchase and prices start rising. in the case of the great german inflation it began to finance the german government's war expenses of the first world war in one nine hundred fourteen to one nine hundred eighteen but then it continued for another five years after the war with the result that virtually the entire german economy was destroyed just give an example for the viewers in one thousand and thirteen a hundred years ago a german could go into a store and buy a basket of goods for the equivalent of one hundred german marks when the inflation ended in november of one nine hundred twenty three it would have cost the same german buying the same basket of goods seven hundred fifty trillion marks viewers

probably can see it very clearly but behind my head on the wall framed are german postage stamps and in one thousand twenty after six years of inflation it would have cost an ordinary german twenty marks to buy an everyday ordinary postage stamp when the inflation ended in november of one nine hundred twenty three that same postage stamp would have cost fifty billion marks it destroyed the savings of an entire generation of germans it brought about bad investment in employment situations all of which came crashing down when the inflation finally ended in november one thousand twenty three with a virtual destructive collapse of the currency so that's pretty interesting i like the stance reference the high and it is now you're right that germany is in face mary insanity eight ended with the bursal collapse not only the german mark like you say but also the country's social. fabric as well how specifically did inflation cause this the the end of the social fabric that was germany well for

example the entire middle class found its entire life savings basically wiped out you put money into the bank you expect it to be there collecting some interesting and to be geared to for your retirement your own old old pure old age and every day is the inflation became worse and worse the real buying power of those same german marks still further and further until virtually to give one example there was a famous german author who had made a good living as a writer he was now an elderly man and in the you want him of nineteen twenty three he took out his entire life savings which could have kept him very comfortable in ordinary times it bought him the equivalent of a token on the german trolley system he bought a token took a trolley ride around the city went home and committed suicide that's how it destroyed people savings businesses thought they were making profits when in fact inflation distorted prices and costs and what appeared to be a paper profit and that of being a real loss so it wiped out businesses this well and distorted the entire society

in the fabric of the society it was it was an immense disaster again just one extreme example again at the height of the implication in the autumn of one nine hundred twenty three i once met someone who had lived through this in berlin and he told me that in that you could be sitting in a berlin cafe and in the time that it took you to drink a cup of coffee the price of that cup of coffee would have doubled the moral he drew from this was drink famous. i mean i'm laughing but it's truly a heartbreaking story and it's it draws the question you know almost immediately after the start of world war one in july of one thousand nine hundred fourteen term in parliament they passed a series of laws establishing the government's ability to issue a variety of war bonds and the german central bank would be obliged to finance those bonds by printing new money now i want to ask you can you draw. the parallels between the monetary policy in one thousand four hundred germany and the u.s. today yes the fact is the federal reserve has traditionally increased the money

supply that is injected money into the banking system and through the banking system then out to the to the rest of the economy by buying u.s. government treasury securities the treasury securities that the government has used to cover its deficit spending year after year and in just the last several years less for five years the federal reserve has been basically buying up anough of these securities to be equal to funding anywhere from forty to sixty percent of the government's deficit each year the consequence is that we basically have had a government borrowing money and paper money treated to fund it now i'm sure many viewers are wondering well how come if this is the case and the federal reserve has increased the money supply by over four trillion dollars in the last four four nam five years why haven't we seen more price inflation and that's because the fed reserve has been playing a game it creates the money into the banking system the banks could lend it to us

but the federal reserve has through increasing the money supply manipulating interest rates so low as everybody knows and rather tend to lend the money to us consumers and businessmen at these artificially low interest rates the fed reserve pays these banks a slightly higher rate of interest to not lend the money and just keep them banked in the bank if you will but at some point if if if market conditions improve and business demand to borrow really increases well the banks will find it was profitable to start lending more and more and that money could easily come flooding into our economy i'm not saying that we face in any immediate situation an inflation as catastrophic as the ones that the german people suffered in the early one nine hundred twenty s. but if all of those trillions of dollars did start flooding into the market we could. actually see in inflation of an historical significance like some americans viewing the show will remember from the one nine hundred seventy s.

when women were in credit card. debt was at something like twenty five to thirty percent interest rate and inflation as measured by the consumer price index was averaging almost an annual rate of twenty percent a year that's not good like the germans but by american standards that would be highly disruptive and very corrosive of people savings now richard allen i would love to ask you many more questions are going to have to have you back on but that's all the time we have for now sadly thank you so much for your insight that was richard hadlee an economics professor at northwood university time now for today's big deal. i'm joined now by. and we're going to talk toys and just in time for the holiday season which is starting now right now right now maybe yesterday giving dave.

goldie blox talking about it's a new toy company and it wants to turn young girls into future engineers and it just launched its first commercial now to much acclaim and controversy commercials launched now the background music in the commercials a parody of the beastie boys hit song girls. girls and pretty much turns out that the message of the song is put on its head and now there's a lawsuit so in an open letter the surviving beastie boys write quote as creative as it is make no mistake your video is an advertisement that is designed to sell a product and long ago we made a conscious decision not to permit our music and your name to be used in product search i'll ask you now i know there's been some confusion here as to who's suing who. fascinatingly enough goldie blox preemptively sued the beastie boys for the right to use this song interestingly they didn't contact the beastie boys

ahead of time and say could we use this song instead they seem upset with the law yet they decide that with a lawsuit they claim that they were first the written by the beastie boys which is why they filed this lawsuit to ask for fair use they say that because they're using this song as a parody as you said turning it on its head instead of saying you know girls are good for cleaning the laundry cleaning the kitchen clean the bathroom they're saying you know girls can launch the next build the app girls can do all those things the beastie boys seem to be saying listen that's great we're totally down with the message but first of all don't turn us into the bad guys you sued us here totally out of nowhere preemptively. for using our our stuff you know this is our song we've said we're down with the message we think be good to you know empower young women who've we've said no matter what it's for your the bottom line is goldie blox to sell a for profit company trying to make money whether they really believe in empowering young women or just know that that might be a good market to branch into i mean there either way they're trying to make money

here i always thought logos were unisex but apparently not. but you know what does this set a really bad precedent in terms of you know companies suing ahead of time preemptively instead of paying for the rights to the music it seems will raise you that they would actually what lawyer what legal team would dream up this scheme that would say. and i mean i think that a lot of companies i'm thinking of walt disney in particular though the n.f.l. also comes to mind though i guess they're nonprofit are. really really litigious so you could understand why even if you because fair use is a diff is a defense that you can use in court but it's not a way to get out of court it's just something that you can use once you've already been weird up so i think that there's a lot of issues with copyright in general this country that need to be worked out but in terms of what goldie blox is doing here i think that at first they really have the public on their side because a lot of original reports that came out said the beastie boys are suing but really they had it wrong and it was goldie blox that came out with the first suit come on

goldie blox that i want to be on goldie blox that is yet and i am going to absolutely exactly that it really was a surviving beastie boys who said we have always said that we don't want to be used for advertisements interesting lee because so many musical artists they are realizing that the only way they can make a profit these days is by selling their song rights to motorola i can't think of one like quote unquote indie music that is in the car commercial so i think. no that's very well i guess the beastie boys they made their money and eighty's and ninety's when the music industry still was. they're to make a lot of money and you know you will still have records i bought a beastie boys cd i love i'm aging myself. and we love the beastie boys now despite the lawsuit the question is does goldie blox have a buyable business strategy on their hands yes goldie blox was actually funded largely by kickstarter i know we've talked about that before and already had twenty

two thousand orders in place before they've even launched this new commercial which is also come out to much acclaim as you mentioned before nearly ten thousand or ten million people have already watched this commercial i'm sure the fact that all this controversy this was around is only helping them in terms of getting more eyes on their website on their commercial and people talking about them as you said just in time for the holidays you know they already have that built in audience of a lot of people who are saying this is really great we would like to buy this stuff so much so that we're willing to fund development of these toys well said ms perseus and post turkey day to you that's all that's i'm going to have. but you can see all segments featured in today's show on you tube at youtube dot com slash boom bust r t well so love hearing from you so please check out our facebook page at facebook dot com slash boom bust our teeth from all of us here boom bust thanks for watching the next time.

wealthy british style the sun. is not on my list for. market why not i'm going to. find out what's really happening to the global economy

with my next concert for a no holds barred look at the global financial headlines tune into cons a report on. what is the fate of the house of saud its list of complaints against washington is long and getting longer the saudis are furious over western dealings with iran disappointed that obama didn't bomb syria and one of its only real friends in the region is israel given all this kemah house of saud afford what he calls an independent foreign policy. i'm. a. big corporation mind. you i'm the banker i think it's all been all about money and i guess that's like that for a politician write the laws. that. come up. here just to pledge. today. that.

well if you're little more than a lot of. knowledge base your life you know. pleasure to have you with us here on our t.v. today i roll researcher.

coming up on our t.v. an explosive look at a not so exclusive list in san francisco federal court a woman finds to get off the terror watch list so why was she on it in the first place i mean is the list even affective more on that just ahead and another spy development in the n.s.a. surveillance case of foreign leaders this time looks like our neighbors to the north help us fly on heads of state during the two thousand and ten g. eight and g. twenty summit in canada or in the expansion of international surveillance coming up and orange county police officers are on trial over the death of a local homeless man for months now there's been video showing how kelly thomas was beaten and tasered by police officers before his death the latest on the case later in the show.